So does it make sense to default participants solely on their age when considering something as critical as providing them with the best opportunity to retire with dignity?

Luckily, better alternatives exist today. Fisher Personalized Retirement Outcomes (PRO) QDIA harnesses advanced technology to provide every participating employee with a personalized investment experience while considering their unique circumstances beyond age.

The defined contribution industry is evolving!

Personalized Retirement Outcomes (PRO) QDIA uses automated data points from a plan’s record keeper to provide a personalized asset allocation without requiring direct participant engagement.

Why consider Fisher PRO QDIA as an appropriate default option:

  • Participants are 2x as likely to remain satisfied with personalized solution products1.
  • Personalized solutions can lead to an increase in retirement income by over 40%2.
  • Personalized QDIA solutions can increase defaulted employee saving rates by 0.5%, on average 3.
  • One year delay in retirement can cost a company more than $50,000 per employee4.

 

1 “Professional Investment Assistance Report Highlights.” Research & Insights, Alight Solutions, 2018

2 Blanchett, David, et al.” The Impact of the Default Investment Decision on Participant Deferral Rates: Managed Accounts vs Target-Date Funds, Morningstar Investment Management LLC, 17 Oct. 2016

3 Blanchett, David. The Impact of Expert Guidance on Participant Savings and Investment Behaviors. Morningstar Investment Management, 20 Aug. 2014

4 “Why Employers Should Care About the Cost of Delayed Retirements.” Prudential Research & Perspectives, The Prudential Insurance Company of America, Newark, NJ, 2017, www.prudential.com/media/managed/rp/32361.html.